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How can you measure the impact of your sustainable investments?

Curious about sustainable investment

How can you measure the impact of your sustainable investments?

Measuring the impact of sustainable investments can be a complex process, but there are several metrics and frameworks that investors can use to evaluate the environmental and social performance of their investments. Some of the commonly used metrics and frameworks include:

1. Environmental, Social, and Governance (ESG) criteria: ESG criteria assess the environmental, social, and governance performance of companies and other entities, providing a framework for evaluating sustainable investments. ESG factors can include things like a company's carbon footprint, labor practices, and board diversity.

2. Impact measurement frameworks: There are several impact measurement frameworks that investors can use to evaluate the social and environmental impact of their investments, such as the United Nations Sustainable Development Goals (SDGs) and the Global Impact Investing Network's Impact Reporting and Investment Standards (IRIS).

3. Carbon accounting: Carbon accounting is a way to measure the carbon footprint of an investment. This can be used to assess the environmental impact of an investment and compare it to other investments.

4. Social return on investment (SROI): SROI is a framework for evaluating the social impact of an investment. It involves assessing the social outcomes of an investment and comparing them to the costs.

By using these metrics and frameworks, investors can gain a better understanding of the social and environmental impact of their investments, and make more informed decisions about which sustainable investment opportunities to pursue.

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